1031 Replacement Property Alternatives. There are four kinds of replacement properties.

  • Traditional Properties

  • Triple Net (NNN) Properties

  • Delaware Statutory Trust (DST) Properties

  • Oil & Gas Interests

What is the status of your 1031 exchange?

Are you an Accredited Investor?
Do you have a net worth of $1 million or greater, not including your personal residence?YesNo

Call for free consultation and
use our toll free number

Simplified 1031-Exchange Solutions – DST’s

Simplified 1031-Exchange Solutions - DST's

A Delaware Statutory Trust is a separate legal entity created as a trust under Delaware statutory law. Delaware law provides great flexibility in the design and operation of the entity. However, to use a DST in a Section 1031 tax-deferred exchange program, it must comply with the requirements of IRS Revenue Ruling 2004-86 so that a beneficial interest in the trust is treated as a direct interest in real estate for tax purposes. The trust also must satisfy lender requirements, especially if the loan is to be securitized.

A DST-structure is a “pooled-equity” investment. DST purchasers realize significant benefits by acquiring a property that is typically a higher-quality asset than could be purchased individually. investors looking for stabilized, core properties often favor a DST-structured investment.

Oil & Gas Interests

Purchasers of DST-structured real estate investments typically enjoy monthly cash flow from high quality properties. A 1031 Replacement affords purchasers an investment free of day-to-day management responsibilities. Trust and its third-party management partners professionally conduct all property and asset management.

DST Advantages

  • Provides investors with lower minimum equity requirements
  • Provides more simple and efficient closing process
  • Provides investors protection against loan recourse liability
  • Provides the ability to act quickly when issues arise
  • Provides investors greater security against rogue investors
  • Provides a less complex structure for investors
  • Eliminates annual LLC fees to investors
  • Eliminates need for investors to provide tax returns to lenders